The 15-25 Cardium Hz well at Niton was drilled in August 2013 and placed on production in late September. This was the third earning well drilled as part of the 8,000 acre farm-in in the Niton/McLeod area. Hyperion has now fully earned three of the four primary earning blocks under the farm-in agreement, with capital plans in place to earn the remaining prospective lands. The 15-25 well was drilled with a 1,300m horizontal section, completed with a 19 stage slick water frac and placed on pump after 1 day of flow back. The well has produced (on cleanup) an average of 100 boe/d (90% oil) over the last 7 days with frac water cuts dropping to 30%. Management is optimistic that as more frac fluid is recovered the oil rate will increase. To date approximately 24% of the frac water used in the completion has been recovered, as compared to Hyperion’s other Niton/McLeod Cardium producers with average frac water recovery of 38% in the first 30 days and 41% after 120 days on production. The Cardium formation at Niton/McLeod does not produce formation water.

Costs to drill, complete, tie-in and equip were reduced from $3.7 million on the first well in the Niton/McLeod area to $2.9 million for the 15-25 well (both of which were the first wells on a four well pad). With a continued focus on capital efficiency, Hyperion is currently preparing to drill an extended reach horizontal well. Hyperion’s current total well length of approximately 3,000m (with 1,300m of horizontal pay) would initially be increased to approximately 4,000m (with 2,300 of horizontal pay), with the opportunity for longer wells based on success. Based on actual offset performance, a long reach horizontal well in Hyperion’s tier one acreage at Niton/McLeod is expected to have a type curve with an IP30 of 220 boe/d (90% light oil/NGL) and reserves of 220 mboe (83% light oil/NGL). The short horizontal wells have a type curve IP30 of 160 boe/d (90% light oil/NGL) and reserves of 148 mboe (83% light oil/NGL).

Based on cost reductions achieved to-date, and using the infrastructure built for the first well on a pad (road, lease and gas pipeline), on stream capital cost for the long reach horizontal on a full development basis are expected to average $3.4 million and $2.6 million for a short horizontal well.

The long horizontal wells are expected to yield a rate of return of greater than 85% with the short horizontals providing a rate of return of greater than 45%.

The Company currently has an inventory in Niton/McLeod of up to 167 gross (151 net, unbooked) short horizontal locations. Management estimates that long reach horizontal drilling techniques could be applied to 45% of this existing Niton/McLeod inventory.

CORPORATE UPDATE

The Special Committee of independent directors, formed in July of 2013, continues to work with its financial advisor, National Bank Financial Inc., to identify, consider and evaluate all options to enhance value and liquidity for its shareholders.

As a result of continued capital efficiency enhancements at Niton/McLeod which drive visible and repeatable economic growth, combined with strong underlying base asset value, the Company believes the current share price levels do not reflect Hyperion’s fundamental value.

Hyperion continues to maintain an excellent portfolio of base producing assets that deliver predictable performance. Hyperion has a current production profile that continues to meet or exceed the proved plus probable producing forecast as independently evaluated by McDaniel and Associates. The net present value of this forecast, as at July 1, 2013 is $69.1 million. Looking ahead, Hyperion expects to maintain production levels to achieve its stated yearly guidance of 1,100 and 1,200 boe/d.

Forward Looking and Cautionary Statements

This press release contains certain forward-looking statements (forecasts) under applicable securities laws relating to future events or future performance. Forward-looking statements are necessarily based upon assumptions and judgements with respect to the future including, but not limited to, the outlook for commodity markets and capital markets, the performance of producing wells and reservoirs, well development and operating performance, general economic and business conditions, weather, the regulatory and legal environment and other risks associated with oil and gas operations. In some cases, forward-looking statements can be identified by terminology such as “may”, “will”, “should”, “expect”, “projects”, “plans”, “anticipates” and similar expressions. These statements represent management’s expectations or beliefs concerning, among other things, future operating results and various components thereof affecting the economic performance of Hyperion. Undue reliance should not be placed on these forward-looking statements which are based upon management’s assumptions and are subject to known and unknown risks and uncertainties, including the business risks discussed above, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted.

In particular, this press release may contain forward looking statements pertaining to the following:

the performance characteristics of the Company’s oil and natural gas properties;

oil and natural gas production levels;

capital expenditure programs;

the quantity of the Company’s oil and natural gas reserves and anticipated future cash flows from such reserves;

projections of commodity prices and costs;

supply and demand for oil and natural gas;

expectations regarding the ability to raise capital and to continually add to reserves through acquisitions and development; and

treatment under governmental regulatory regimes.

The Company’s actual results could differ materially from those anticipated in the forward looking statements contained throughout this press release as a result of the material risk factors set forth below, and elsewhere in this press release:

changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry.

These factors should not be construed as exhaustive. Unless required by law, Hyperion does not undertake any obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

Barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet (mcf) of natural gas to one barrel (bbl) of oil is based on an energy conversion method primarily applicable at the burner tip and is not intended to represent a value equivalency at the wellhead. All boe conversions in this press release are derived by converting natural gas to oil in the ratio of six thousand cubic feet of natural gas to one barrel of oil. Certain financial amounts are presented on a per boe basis, such measurements may not be consistent with those used by other companies.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.